CONTRACT PROCEDURE RULES - SPS Consultancy

CONTRACT 

PROCEDURE 

RULES 

AT THE HEART OF 

PUBLIC SERVICES

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PROCEDURE 

RULES 

AT THE HEART OF 

PUBLIC SERVICES

Published by: 

CIPFA, THE CHARTERED INSTITUTE OF PUBLIC FINANCE AND ACCOUNTANCY 

3 Robert Street, London WC2N 6RL. Tel: 020 7543 5600 Fax: 020 7543 5700 

www.cipfa.org.uk 

© 2006, CIPFA 

Designed and typeset by Ministry of Design, Bath (www.ministryofdesign.co.uk) 

Edited by Sarah Lloyd (sarah@redlane.org.uk) 

No responsibility for loss occasioned to any person acting or refraining from action 

as a result of any material in this publication can be accepted by the authors or 

publisher. 

While every care has been taken in the preparation of this publication, it may contain 

errors for which the publisher and authors cannot be held responsible. 

ii 

CONTRACT PROCEDURE RULES

FOREWORD BY CIPFA 

Local authorities now take a wide view of 

procurement and are addressing the numerous 

issues within the National Procurement 

Strategy for local government which in 2003 

identified that local authorities spend over 

£40bn a year providing essential services to 

millions of people. Local authorities are also 

implementing the various initiatives associated 

with the Egan Rethinking Construction 

agenda. 

It is important that we all recognise the impact 

that efficient and effective procurement of 

goods, services and works have on service delivery. It is also vital that we 

procure in an efficient manner whilst ensuring that optimum solutions are 

delivered to assist the provision of high-quality front-line services to the 

public. 

To be fully effective it is vital that procurement processes operate 

within the framework of a council’s corporate procurement strategy 

that identifies the actions to be taken to ensure delivery of the council’s 

community plan and corporate objectives. In 2003, CIPFA, together 

with the Local Government Task Force, produced How to Develop a 

Procurement Strategy – A Guide for Local Authorities. This publication 

encouraged all those involved in procurement to look outside their 

specific work areas by considering the wider picture within their 

authority. It also advocated close working relationships between 

procurement officers and their auditors, with a view to removing the 

perceived obstacles to change. 

I am now very pleased to welcome this update of the example contract 

procedure rules that were included in the 2003 CIPFA publication. While 

not intended to be a model, they illustrate how such rules may be written 

in order to accommodate the principles of the National Procurement 

Strategy and the Rethinking Construction agenda. I therefore strongly 

encourage local authorities to use this document as the platform for 

undertaking reviews of their contract procedure rules. 

As with the earlier version, these example rules are based on those in 

operation at Cambridgeshire County Council and again have been 

produced in association with the Local Government Task Force. 

CONTRACT PROCEDURE RULES 

iii

I would like to record my thanks and appreciation to Ken Odgers of 

Contractauditline for compiling these example rules and to Ian Stewart 

of Cambridgeshire County Council for commenting on the earlier 

drafts. The help and assistance provided by the Local Government Task 

Force, and in particular Peter Bishop, is warmly appreciated and CIPFA 

gratefully acknowledges the time and effort of all those involved in its 

production. 

Richard King 

Chair of CIPFA’s Audit Panel 

iv 


FOREWORD BY THE 

LOCAL GOVERNMENT 

TASK FORCE 

Three defining reports – Egan, Latham and 

Byatt – have made a lasting impact on local 

government construction and as a result the 

industry is in a fitter position than ever before 

to deliver high-quality construction projects. 

Central to this success story has been the 

transformation of procurement. Procuring 

major projects is a complex and challenging 

business and, rather like a piece of music 

marred by a false note, so the constituent 

components of the procurement process must 

work together to deliver the desired outcomes. 

Local government will continue to face the dual challenge of improving 

its services while making them ever more efficient. Indeed, the pace of 

transformation must quicken and its reach must widen. 

That is why I am delighted to endorse these updated example contract 

procedure rules. In the search for ever better outcomes, we must examine 

all aspects of the procurement process to make sure they are fit for 

purpose and help deliver, not hinder, the transformation of our public 

services. 

Prepared by CIPFA in association with the Local Government Task Force, 

the example contract procedure rules represent an excellent example 

of two disciplines collaborating with a shared aim. I would urge local 

authorities to review their contract rules in line with these updated 

examples to ensure that the transformation of procuring local government 

construction projects continues apace. 

Roger Latham 

Chair of the Local Government Task Force 


v

PREFACE 

The issue of the Byatt Report (Delivering Better Services for Citizens), and 

the subsequent National Procurement Strategy for Local Government, 

focused the attention of local authorities on the subject of procurement. 

In particular, it highlighted the need for authorities to widen their 

horizons by taking a corporate view of procurement issues. This 

includes a shift in emphasis from initial purchase costs and short-term 

savings to the examination of whole-life costs and establishing longerterm 

objectives to secure overall best value. Coupled with the National 

Procurement Strategy are the various initiatives associated with the Egan 

Rethinking Construction agenda. 

The best authorities recognise the critical contribution that procurement 

makes to the quality of the services delivered to their communities and that 

it must be seen in the context of the council’s overall objectives. Whilst 

economy is an essential ingredient of best value, it is also important that 

procurement decisions are taken in light of the broader objectives that the 

council is seeking to achieve. Effective procurement must therefore be 

measured as much by the social outcomes and community benefits that 

result as by the financial gains that are achieved. Balancing these two 

dimensions is at the heart of effective best value procurement. 

Most authorities have now produced corporate procurement strategies 

which reflect their corporate vision, plans and objectives. These strategies 

set out their approach for identifying opportunities for partnering and 

collaboration, letting authority-wide contracts and framework agreements 

and exploring various e-procurement initiatives. However, it is important 

that these authorities ensure that the delivery of their strategies is not 

obstructed by their contract procedure rules (often referred to as contract 

standing orders) which should encourage, rather than hinder, the 

widespread adoption of best practice. 

CIPFA, in association with the Local Government Task Force, has 

produced these updated example contract procedure rules. The example 

rules are intended to provide local authorities with a document that 

requires minimal adjustment and revision before it can be adopted by 

an individual authority. Authorities will need to ensure that the final 

document adequately reflects their corporate procurement strategies, and 

some tailoring may be required (eg financial thresholds and designated 

officers) to accord with provisions in their respective constitutions. 

Contract procedure rules are the link between the documented 

procurement strategy and the development of detailed codes of practice, 

training and the establishment of operational procedures. Therefore, 

once completed, it is envisaged that authorities will ensure that their rules 

are supported by a detailed purchasing guide and standard documents, 

preferably on their intranets, to steer the systems and procedures that are 

established at departmental level. 

vi 


CONTENTS 

A BRIEF GUIDE TO CONTRACT PROCEDURE RULES 1 

SECTION 1: SCOPE OF CONTRACT PROCEDURE RULES 2 

1. BASIC PRINCIPLES 2 

2. OFFICER RESPONSIBILITIES 2 

3. EXEMPTIONS, COLLABORATIVE AND E-PROCUREMENT 

ARRANGEMENTS 3 

4. RELEVANT CONTRACTS 4 

SECTION 2: COMMON REQUIREMENTS 5 

5. STEPS PRIOR TO PURCHASE 5 

6. RECORDS 6 

7. ADVERTISING, APPROVED LISTS AND FRAMEWORK 

AGREEMENTS 7 

SECTION 3: CONDUCTING PURCHASE AND DISPOSAL 10 

8. COMPETITION REQUIREMENTS FOR PURCHASE, 

DISPOSAL AND PARTNERSHIP ARRANGEMENTS 10 

9. PRE-TENDER MARKET RESEARCH AND CONSULTATION 12 

10. STANDARDS AND AWARD CRITERIA 12 

11. INVITATIONS TO TENDER/QUOTATIONS 13 

12. SHORTLISTING 14 

13. SUBMISSION, RECEIPT AND OPENING OF 

TENDERS/QUOTATIONS 14 

14. CLARIFICATION PROCEDURES AND POST-TENDER 

NEGOTIATION 15 

15. EVALUATION, AWARD OF CONTRACT, AND DEBRIEFING 

CANDIDATES 16 

SECTION 4: CONTRACT AND OTHER FORMALITIES 18 

16. CONTRACT DOCUMENTS 18 

17. BONDS AND PARENT COMPANY GUARANTEES 20 

18. PREVENTION OF CORRUPTION 20 

19. DECLARATION OF INTERESTS 21 


vii

SECTION 5: CONTRACT MANAGEMENT 22 

20. MANAGING CONTRACTS 22 

21. RISK ASSESSMENT AND CONTINGENCY PLANNING 22 

22. CONTRACT MONITORING, EVALUATION AND REVIEW 22 

DEFINITIONS APPENDIX 24 

All costs stated in these contract procedure rules are exclusive of VAT, 

staff costs and fees. 

Terms appearing in the definitions appendix are italicised and 

capitalised. 

FURTHER ADVICE WITHIN OFFICE OF CORPORATE 

SERVICES: 

Legal Services 

Internal Audit 

Strategic Procurement and Contract Management Service 

viii 


A BRIEF GUIDE TO 


PROCEDURE RULES 

These contract procedure rules (issued in accordance with section 135 

of the 1972 Local Government Act) are intended to promote good 

purchasing practice and public accountability and deter corruption. 

Following the rules is the best defence against allegations that a purchase 

has been made incorrectly or fraudulently. 

Officers responsible for purchasing or disposal must comply with these 

contract procedure rules. They lay down minimum requirements and a 

more thorough procedure may be appropriate for a particular contract. 

(For example, if Rule 8.1 would normally require that quotes be obtained, 

it might be appropriate in particular circumstances to seek additional 

quotations in writing or tender submissions. Equally, it may not always be 

appropriate to make use of an exemption under Rule 3 even if one might 

apply or be granted.) 

For the purposes of these rules, where there is a requirement for 

communication to be in writing, this shall be deemed to include e-mail 

and fax transmissions as well as hard copy. 

• Follow the rules if you purchase goods or services or order building 

work. 

• Take all necessary legal, financial and professional advice. 

• Declare any personal financial interest in a contract. Corruption is a 

criminal offence. 

• Conduct any Best Value review and appraise the purchasing need. 

• Check whether there is an existing Corporate Contract you can 

make use of before undergoing a competitive process. 

• Normally allow at least four weeks for submission of bids (not to be 

submitted by fax or e-mail). 

• Keep bids confidential. 

• Complete a written contract or council order before the supply or 

works begin. 

• Identify a contract manager with responsibility for ensuring the 

contract delivers as intended. 

• Keep records of dealings with suppliers. 

• Assess each contract afterwards to see how well it met the 

purchasing need and Value for Money requirements. 

In accordance with the Constitution, the Chief Finance Officer shall 

have the power to make amendments from time to time to these contract 

procedure rules after consultation with the Heads of Legal Services and of 

Audit and Risk Management. 

CONTRACT PROCEDURE RULES 1

SECTION 1: 

SCOPE OF CONTRACT 

PROCEDURE RULES 

1. BASIC PRINCIPLES 

All purchasing and disposal procedures must: 

• achieve Best Value for public money spent 

• be consistent with the highest standards of integrity 

• ensure fairness in allocating public contracts 

• comply with all legal requirements 

• 

• 

• 

ensure that Non-commercial Considerations do not influence 

any Contracting Decision 

support the council’s corporate and departmental aims and 

policies 

comply with the council’s corporate Procurement Strategy and 

competition policy. 

2. OFFICER RESPONSIBILITIES 

2.1 Officers 

2.1.1 Officers responsible for purchasing or disposal must comply 

with these contract procedure rules, Financial Regulations, the 

Code of Conduct and with all UK and European Union binding 

legal requirements. Officers must ensure that any Agents, 

Consultants and contractual partners acting on their behalf 

also comply. 

2.1.2 Officers must: 

• have regard to the guidance in the Purchasing Guide 

• 

check whether a suitable Corporate Contract exists 

before seeking to let another contract; where a suitable 

Corporate Contract exists, this must be used unless there 

is an auditable reason not to 

• keep the records required by Rule 6 

• take all necessary legal, financial and professional advice. 

2.1.3 When any employee either of the authority or of a service 

provider may be affected by any transfer arrangement, Officers 

must ensure that the Transfer of Undertaking (Protection of 

Employment) (TUPE) issues are considered and obtain legal 

advice before proceeding with inviting Tenders or Quotations. 

2 CONTRACT PROCEDURE RULES

2.2 Chief Officers 

2.2.1 Chief Officers must: 

• ensure that their staff comply with Rule 2.1 

• keep registers of: 

– 

– 

contracts completed by signature, rather than by 

the council’s seal (see Rule 16.3) and arrange their 

safekeeping on council premises 

exemptions recorded under Rule 3.2. 

3. EXEMPTIONS, COLLABORATIVE AND 

E-PROCUREMENT ARRANGEMENTS 

3.1 The council and its Cabinet have power to waive any requirements 

within these contract procedure rules for specific projects, and any 

such decision may be a Key Decision. 

3.2 In exceptional circumstances, a Chief Officer also has the power, 

under the scheme of delegation in the Constitution, to waive any 

requirements within these contract procedure rules, provided that, 

where the contract is likely to exceed £40,000, the relevant Portfolio 

Holder is consulted. 

3.3 Where a proposed contract is likely to exceed the EU Threshold, 

a Chief Officer has no delegated powers and the matter has to be 

determined by the Cabinet or council (see Rule 3.1). No exemption 

can be used if the EU Procedure applies. 

3.4 Where an exemption is necessary because of an unforeseeable 

emergency involving immediate risk to persons, property or serious 

disruption to council services, the Officer and the Chief Finance 

Officer may jointly approve the exemption but they must prepare a 

report for the next Cabinet to support the action taken. 

3.5 All exemptions, and the reasons for them, must be recorded using 

the form in the Purchasing Guide. Exemptions shall be signed by 

the Officer and countersigned by the Chief Finance Officer. 

3.6 The Strategic Procurement and Contract Management Service 

must be consulted and an exemption approved by the Director 

of Governance prior to commencing any procurement process 

using Office of Government Commerce (OGC) Buying Solutions 

Contracts. The terms and conditions of contract applicable to 

any OGC arrangement, including the requirement to undertake 

competition between providers, must be fully complied with. 

3.7 Financial Officers must monitor the use of all exemptions. 


3.8 In order to secure Value for Money, the authority may enter 

into collaborative procurement arrangements. The Officer must 

consult the Chief Finance Officer and the Head of Legal Services 

where the purchase is to be made using collaborative procurement 

arrangements with another local authority, government department, 

statutory undertaker or public service purchasing consortium. 

3.8.1 All purchases made via a local authority purchasing and 

distribution consortium are deemed to comply with these 

contract procedure rules and no exemption is required. 

However, purchases above the EU Threshold must be let under 

the EU Procedure, unless the consortium has satisfied this 

requirement already by letting their contract in accordance 

with the EU Procedures on behalf of the authority and other 

consortium members. 

3.8.2 Any contracts entered into through collaboration with other 

local authorities or other public bodies, where a competitive 

process has been followed that complies with the contract 

procedure rules of the leading organisation, will be deemed to 

comply with these contract procedure rules and no exemption 

is required. However, advice must be sought from the Strategic 

Procurement and Contract Management Service. 

3.9 The use of e-procurement technology does not negate the 

requirement to comply with all elements of these contract 

procurement rules, particularly those relating to competition and 

Value for Money. 

4. RELEVANT CONTRACTS 

4.1 All Relevant Contracts must comply with these contract procedure 

rules. A Relevant Contract is any arrangement made by, or on 

behalf of, the authority (including schools) for the carrying out 

of works or for the supply of goods, materials or services. These 

include arrangements for: 

• the supply or disposal of goods 

• the hire, rental or lease of goods or equipment 

• 

the delivery of services, including (but not limited to) those 

related to: 

– 

– 

– 

the recruitment of staff 

land and property transactions 

financial and consultancy services. 

4.2 Relevant Contracts do not include: 

• 

contracts of employment which make an individual a direct 

employee of the authority, or 

• agreements regarding the acquisition, disposal, or transfer of 

land (for which Financial Regulations shall apply). 


SECTION 2: COMMON 

REQUIREMENTS 

5. STEPS PRIOR TO PURCHASE 

5.1 The Officer must appraise the purchase, in a manner commensurate 

with its complexity and value, and taking into account any guidance 

in the Purchasing Guide, by: 

• 

taking into account the requirements from any relevant Best 

Value review 

• appraising the need for the expenditure and its priority 

• defining the objectives of the purchase 

• 

• 

• 

• 

• 

assessing the risks associated with the purchase and how to 

manage them 

considering what procurement method is most likely to achieve 

the purchasing objectives, including internal or external 

sourcing, partnering, packaging strategy and collaborative 

procurement arrangements with another local authority, 

government department, statutory undertaker or public service 

purchasing consortium 

consulting users as appropriate about the proposed 

procurement method, contract standards and performance and 

user satisfaction monitoring 

drafting the terms and conditions that are to apply to the 

proposed contract 

setting out these matters in writing if the Total Value of the 

purchase exceeds £30,000. 

5.2 and by confirming that: 

• 

there is member or delegated approval for the expenditure and 

the purchase accords with the approved policy framework and 

scheme of delegation as set out in the Constitution 

• if the purchase is a Key Decision, all appropriate steps have 

been taken. 


6. RECORDS 

6.1 Where the Total Value is less than £30,000, the following records 

must be kept: 

• invitations to quote and Quotations 

• a record: 

– 

– 

of any exemptions and the reasons for them 

of the reason if the lowest price is not accepted 

• 

written records of communications with the successful 

contractor or an electronic record if a written record of the 

transaction would normally not be produced. 

6.2 Where the Total Value exceeds £30,000 the Officer must record: 

• the method for obtaining bids (see Rule 8.1) 

• any Contracting Decision and the reasons for it 

• any exemption under Rule 3 together with the reasons for it 

• the Award Criteria in descending order of importance 

• Tender documents sent to and received from Candidates 

• pre-tender market research 

• 

clarification and post-tender negotiation (to include minutes of 

meetings) 

• the contract documents 

• post-contract evaluation and monitoring 

• communications with Candidates and with the successful 

contractor throughout the period of the contract. 

6.3 Records required by this rule must be kept for six years after the 

end of the contract. However, written documents which relate 

to unsuccessful Candidates may be microfilmed or electronically 

scanned or stored by some other suitable method after 12 months 

from award of contract, provided there is no dispute about the 

award. 


7. ADVERTISING, APPROVED LISTS AND FRAMEWORK 

AGREEMENTS 

7.1 Identifying and Assessing Potential Candidates 

7.1.1 Officers shall ensure that, where proposed contracts, 

irrespective of their Total Value, might be of interest to 

potential Candidates located in other member states of the 

EU, a sufficiently accessible advertisement is published. 

Generally, the greater the interest of the contract to potential 

bidders from other member states, the wider the coverage 

of the advertisement should be. Examples of where such 

advertisements may be placed include: 

• the council’s website 

• 

portal websites specifically created for contract 

advertisements 

• national official journals, or 

• 

the Official Journal of the European Union (OJEU)/ 

Tenders Electronic Daily (TED) (even if there is no 

requirement within the EU Procedure). 

7.1.2 Officers are responsible for ensuring that all Candidates for 

a Relevant Contract are suitably assessed. The assessment 

process shall establish that the potential Candidates have 

sound: 

• economic and financial standing 

• technical ability and capacity 

to fulfil the requirements of the authority. 

7.1.3 This shall be achieved in respect of proposed contracts that are 

expected to exceed £75,000 by selecting firms from: 

• 

Approved Lists of providers, maintained by the authority 

or on its behalf, and compiled following responses to a 

public advertisement, or 

• shortlists assessed from expressions of interest in a 

particular contract submitted in response to a public 

advertisement. 

7.1.4 Public advertisements issued in respect of Rule 7.1.3 above 

shall reflect the potential degree of interest from Candidates 

located within other member states of the EU. 

7.2 Approved Lists 

7.2.1 Approved Lists should be used where recurrent transactions of 

a similar type are likely but where such transactions need to be 

priced individually and cannot easily be aggregated and priced 

in a single tendering exercise. Approved Lists cannot be used 

where the EU Procedure applies. 


7.2.2 Chief Officers may draw up in consultation with the Strategic 

Procurement and Contract Management Service: 

• 

Approved Lists of persons ready to perform contracts 

to supply goods or services of particular types including 

without limitation on the basis of agreed contract terms 

• criteria for Shortlisting from the lists. 

7.2.3 No person may be entered on an Approved List until there 

has been an adequate investigation into both their financial 

and their technical ability to perform the contract, unless such 

matters will be investigated each time bids are invited from 

that list. 

7.2.4 Approved Lists must be drawn up after an advertisement 

inviting applications for inclusion on the list. The 

advertisement must be placed to secure the widest publicity 

among relevant suppliers throughout all member states of 

the EU. Persons may be entered on a list between the initial 

advertisement and re-advertisement provided the requirements 

of Rule 7.2.3 are met. 

7.2.5 The list and Shortlisting criteria must be reviewed at least 

annually and re-advertised at least every three years. On readvertisement, 

a copy of the advertisement must be sent to each 

person on the list, inviting them to reapply. Review means: 

• 

the reassessment of the financial and technical ability 

and performance of those persons on the list, unless such 

matters will be investigated each time bids are invited 

from that list 

• the deletion of those persons no longer qualified, with a 

written record kept justifying the deletion. 

7.2.6 All Approved Lists shall be maintained in an open, fair and 

transparent manner and be open to public inspection. 

7.2.7 A register of pre-qualified contractors and Consultants 

maintained by or on behalf of central government (eg 

Constructionline) will be deemed to be an Approved List for 

the purpose of these contract procedure rules and shall not be 

subject to the requirements of Rules 7.2.2 to 7.2.6 inclusive. 

7.3 Framework Agreements 

7.3.1 The term of a Framework Agreement must not exceed four 

years and, while an agreement may be entered into with 

one provider, where an agreement is concluded with several 

organisations, there must be at least three in number. 


7.3.2 Contracts based on Framework Agreements may be awarded 

by either: 

• 

• 

applying the terms laid down in the Framework 

Agreement (where such terms are sufficiently precise 

to cover the particular call-off) without reopening 

competition, or 

where the terms laid down in the Framework Agreement 

are not precise enough or complete for the particular calloff, 

by holding a mini competition in accordance with the 

following procedure: 

– 

– 

– 

inviting the organisations within the Framework 

Agreement that are capable of executing the subject 

of the contract to submit written Tenders 

fixing a time limit which is sufficiently long to allow 

Tenders for each specific contract to be submitted, 

taking into account factors such as the complexity of 

the subject of the contract 

awarding each contract to the tenderer who has 

submitted the best Tender on the basis of the 

Award Criteria set out in the specifications of the 

Framework Agreement. 


SECTION 3: 

CONDUCTING 

PURCHASE AND 

DISPOSAL 

8. COMPETITION REQUIREMENTS FOR PURCHASE, 

DISPOSAL AND PARTNERSHIP ARRANGEMENTS 

The Officer must calculate the Total Value. 

The following procedures apply where there are no other procedures 

which take precedence. Other procedures may include agency agreements 

with government. If in doubt, Officers must seek the advice of the 

Director of Governance. 

8.1 Purchasing – Competition Requirements 

8.1.1 Where the Total Value for a purchase is within the values in the 

first column below, the Award Procedure in the second column 

must be followed. Shortlisting shall be done by the persons 

specified in the third column. 

Total Value Award Procedure Shortlisting 

Up to £2,000 

One oral Quotation (confirmed in 

writing where the Total Value exceeds 

£500) 

Officer 

£2,00–1£30,000 Three written Quotations Officer and Line Manager 

£30,001–£75,000 Invitation to Tender to at least three 

and no more than five Candidates 

Officer and Line Manager 

£75,001–EU 

Threshold 

Above EU Threshold 

Invitation to Tender by advertisement/ 

list to at least three and no more 

than six Candidates 

EU Procedure or, where this does 

not apply, Invitation to Tender by 

advertisement/list to at least four 

and no more than six Candidates 

Officer, Line Manager and 

Chief Finance Officer 

Consult the Head of Legal 

Services – see Rule 8.1.4 

8.1.2 Where it can be demonstrated that there are insufficient 

suitably qualified Candidates to meet the competition 

requirement, all suitably qualified Candidates must be invited. 

8.1.3 An Officer must not enter into separate contracts nor select a 

method of calculating the Total Value in order to minimise the 

application of these contract procedure rules. 


8.1.4 Where the EU Procedure is required, the Officer shall consult 

the Head of Legal Services to determine the method of 

conducting the purchase. 

8.2 Assets for Disposal 

8.2.1 Assets for disposal must be sent to public auction except where 

better Value for Money is likely to be obtained by inviting 

Quotations and Tenders. (These may be invited by advertising 

on the council’s internet site.) In the latter event, the method 

of disposal of surplus or obsolete stocks/stores or assets other 

than land must be formally agreed with the Financial Officer. 

8.3 Providing Services to External Purchasers 

8.3.1 The Director of Governance and the Strategic Procurement and 

Contract Management Service and Financial Regulations must 

be consulted where contracts to work for organisations other 

than the authority are contemplated. 

8.4 Collaborative and Partnership Arrangements 

8.4.1 Collaborative and partnership arrangements are subject to 

all UK and EU procurement legislation and must follow these 

contract procedure rules. If in doubt, Officers must seek 

the advice of the Head of Legal Services and the Strategic 

Procurement and Contract Management Service. 

8.5 The Appointment of Consultants to Provide Services 

8.5.1 Consultant architects, engineers, surveyors and other 

professional Consultants shall be selected and commissions 

awarded in accordance with the procedures detailed within 

these contract procedure rules and as outlined below. 

Total Value Award Procedure Shortlisting 

Up to £30,000 

One oral Quotation (confirmed in 

writing where the Total Value exceeds 

£2,000) 

Officer 

£30,001–£100,000 Three written Quotations Officer and Line Manager 

£100,001–EU 

Threshold 

Above EU Threshold 

Invitation to Tender by advertisement/ 

list to at least three and no more 

than six Candidates 

EU Procedure or, where this does 

not apply, Invitation to Tender by 

advertisement/list to at least four 

and no more than six Candidates 

Officer, Line Manager and 

Chief Finance Officer 

Consult the Head of Legal 

Services – see Rule 8.1.4 

8.5.2 The engagement of a Consultant shall follow the agreement of 

a brief that adequately describes the scope of the services to be 

provided and shall be subject to completion of a formal letter 

or contract of appointment. 

8.5.3 Records of consultancy appointments shall be maintained in 

accordance with Rule 6. 


8.5.4 Consultants shall be required to provide evidence of, and 

maintain professional indemnity insurance policies to the 

satisfaction of the relevant Chief Officer for the periods 

specified in the respective agreement. 

9. PRE-TENDER MARKET RESEARCH AND 

CONSULTATION 

9.1 The Officer responsible for the purchase: 

• 

• 

• 

may consult potential suppliers prior to the issue of the 

Invitation to Tender in general terms about the nature, level 

and standard of the supply, contract packaging and other 

relevant matters, provided this does not prejudice any potential 

Candidate, but 

must not seek or accept technical advice on the preparation 

of an Invitation to Tender or Quotation from anyone who 

may have a commercial interest in them, if this may prejudice 

the equal treatment of all potential Candidates or distort 

competition, and 

should seek advice from the Strategic Procurement and 

Contract Management Service. 

10. STANDARDS AND AWARD CRITERIA 

10.1 The Officer must ascertain what are the relevant British, European 

or international standards which apply to the subject matter of 

the contract. The Officer must include those standards which are 

necessary properly to describe the required quality. The Head of 

Legal Services must be consulted if it is proposed to use standards 

other than European standards. 

10.2 The Officer must define Award Criteria that are appropriate to the 

purchase and designed to secure an outcome giving Value for Money 

for the authority. The basic criteria shall be: 

• ‘lowest price’ where payment is to be made by the authority 

• ‘highest price’ if payment is to be received, or 

• ‘most economically advantageous’, where considerations other 

than price also apply. 

If the last criterion is adopted, it must be further defined by reference 

to sub-criteria which may refer only to relevant considerations. 

These may include price, service, quality of goods, running costs, 

technical merit, previous experience, delivery date, cost effectiveness, 

quality, relevant environmental considerations, aesthetic and 

functional characteristics (including security and control features), 

safety, after-sales services, technical assistance and any other relevant 

matters. 


10.3 Award Criteria must not include: 

• Non-commercial Considerations 

• matters which discriminate against suppliers from the 

European Economic Area or signatories to the Government 

Procurement Agreement. 

11. INVITATIONS TO TENDER/QUOTATIONS 

11.1 The Invitation to Tender shall state that no Tender will be 

considered unless it is received by the date and time stipulated in the 

Invitation to Tender. No Tender delivered in contravention of this 

clause shall be considered. 

11.2 All Invitations to Tender shall include the following: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

A specification that describes the authority’s requirements in 

sufficient detail to enable the submission of competitive offers. 

A requirement for tenderers to declare that the Tender content, 

price or any other figure or particulars concerning the Tender 

have not been disclosed by the tenderer to any other party 

(except where such a disclosure is made in confidence for a 

necessary purpose). 

A requirement for tenderers to complete fully and sign all 

Tender documents including a form of Tender and certificates 

relating to canvassing and non-collusion. 

Notification that Tenders are submitted to the council on the 

basis that they are compiled at the tenderer’s expense. 

A description of the Award Procedure and, unless defined 

in a prior advertisement, a definition of the Award Criteria 

in objective terms and if possible in descending order of 

importance. 

Notification that no Tender will be considered unless it is 

enclosed in a sealed envelope or container which bears the 

word ‘Tender’ followed by the subject to which it relates, but 

no other name or mark indicating the sender. 

A stipulation that any Tenders submitted by fax or other 

electronic means shall not be considered. 

The method by which any arithmetical errors discovered in the 

submitted Tenders is to be dealt with. In particular, whether 

the overall price prevails over the rates in the Tender or vice 

versa. 

11.3 All Invitations to Tender or Quotations must specify the goods, 

service or works that are required, together with the terms and 

conditions of contract that will apply (see Rule 16). 

11.4 The Invitation to Tender or Quotation must state that the council is 

not bound to accept any Quotation or Tender. 


11.5 All Candidates invited to Tender or quote must be issued with 

the same information at the same time and subject to the same 

conditions. Any supplementary information must be given on the 

same basis. 

12. SHORTLISTING 

12.1 Any Shortlisting must have regard to the financial and technical 

standards relevant to the contract and the Award Criteria. Special 

rules apply in respect of the EU Procedure. 

12.2 The officers responsible for Shortlisting are specified in Rule 8.1.1. 

12.3 Where Approved Lists are used, Shortlisting may be done by the 

Officer in accordance with the Shortlisting criteria drawn up when 

the Approved List was compiled (see Rule 7.2.2). However, where 

the EU Procedure applies, Approved Lists may not be used. 

13. SUBMISSION, RECEIPT AND OPENING OF TENDERS/ 

QUOTATIONS 

13.1 Candidates must be given an adequate period in which to prepare 

and submit a proper Quotation or Tender, consistent with the 

complexity of the contract requirement. Normally at least four 

weeks should be allowed for submission of Tenders. The EU 

Procedure lays down specific time periods (see guidance in the 

Purchasing Guide). 

13.2 All Tenders must be returned to the Deputy Chief Executive 

– Corporate Services. 

13.3 Tenders received by fax or other electronic means (eg email) must 

be rejected, unless they have been sought in accordance with an 

electronic tendering system approved by the Chief Finance Officer 

and Head of Legal Services. 

13.4 The Officer must not disclose the names of Candidates to any staff 

involved in the receipt, custody or opening of Tenders. 

13.5 The Deputy Chief Executive – Corporate Services shall be 

responsible for the safekeeping of Tenders until the appointed time 

of opening. Each Tender must be: 

• 

• 

suitably recorded so as to subsequently verify the date and 

precise time it was received 

adequately protected immediately on receipt to guard against 

amendment of its contents 

• recorded immediately on receipt in the Tender Record Log. 


13.6 The Deputy Chief Executive – Corporate Services must ensure that 

all Tenders are opened at the same time when the period for their 

submission has ended. The Officer or his or her representative must 

be present. Tenders must be opened in the presence of two officers 

representing the Deputy Chief Executive – Corporate Services, 

neither of whom can be the Officer. Where the Total Value is more 

than the EU Threshold, one must be the Chief Finance Officer. 

13.7 Upon opening, a summary of the main terms of each Tender (ie 

significant issues that are unique to each Tender submission and 

were not stated in the Tender invitation documents such as Tender 

sum, construction period, etc) must be recorded in the Tender 

Record Log. The summary must be initialled on behalf of the 

Deputy Chief Executive – Corporate Services. 

14. CLARIFICATION PROCEDURES AND POST-TENDER 

NEGOTIATION 

14.1 Providing clarification of an Invitation to Tender to potential or 

actual Candidates or seeking clarification of a Tender, whether in 

writing or by way of a meeting, is permitted. However, discussions 

with tenderers after submission of a Tender and before the award of 

a contract with a view to obtaining adjustments in price, delivery or 

content (ie post-tender negotiations) must be the exception rather 

than the rule. In particular, they must not be conducted in an EU 

Procedure where this might distort competition, especially with 

regard to price. 

14.2 If post-tender negotiations are necessary after a single-stage 

Tender or after the second stage of a two-stage Tender, then such 

negotiations shall only be undertaken with the tenderer who 

is identified as having submitted the best Tender and after all 

unsuccessful Candidates have been informed. During negotiations 

tendered rates and prices shall only be adjusted in respect of a 

corresponding adjustment in the scope or quantity included in the 

Tender documents. Officers appointed by the Chief Officer to carry 

out post-tender negotiations should ensure that there are recorded 

minutes of all negotiation meetings and that both parties agree 

actions in writing. 

14.3 Post-tender negotiation must only be conducted in accordance with 

the guidance issued by the Head of Legal Services who, together 

with the Strategic Procurement and Contract Management Service, 

must be consulted wherever it is proposed to enter into post-tender 

negotiation. Negotiations must be conducted by a team of at least 

two Officers, one of whom must be from a division independent to 

that leading the negotiations. 

14.4 Where post-tender negotiation results in a fundamental change 

to the specification (or contract terms) the contract must not be 

awarded but re-tendered. 


15. EVALUATION, AWARD OF CONTRACT, AND 

DEBRIEFING CANDIDATES 

15.1 Apart from the debriefing required or permitted by these contract 

procedure rules, the confidentiality of Quotations, Tenders and 

the identity of Candidates must be preserved at all times and 

information about one Candidate’s response must not be given to 

another Candidate. 

15.2 Contracts must be evaluated and awarded in accordance with the 

Award Criteria. During this process, Officers shall ensure that 

submitted Tender prices are compared with any pre-tender estimates 

and that any discrepancies are examined and resolved satisfactorily. 

15.3 The arithmetic in compliant Tenders must be checked. If 

arithmetical errors are found they should be notified to the tenderer, 

who should be requested to confirm or withdraw their Tender. 

Alternatively, if the rates in the Tender, rather than the overall price, 

were stated within the Tender invitation as being dominant, an 

amended Tender price may be requested to accord with the rates 

given by the tenderer. 

15.4 Officers may accept Quotations and Tenders received in respect of 

proposed contracts, provided they have been sought and evaluated 

fully in accordance with these contract procedure rules and, in 

respect of proposed contracts that are expected to exceed £200,000, 

the approval of the relevant Portfolio Holder has been secured. The 

awarding of contracts that are expected to exceed £500,000 shall 

also be approved by the Cabinet. 

15.5 Where the Total Value is over £30,000, the Officer must notify all 

Candidates simultaneously and as soon as possible of the intention 

to award the contract to the successful Candidate. The Officer must 

provide unsuccessful Candidates with a period of at least ten days 

in which to challenge the decision before the Officer awards the 

contract. If the decision is challenged by an unsuccessful Candidate 

then the Officer shall not award the contract and shall immediately 

seek the advice of the Head of Legal Services. 

15.6 The Officer shall debrief in writing all those Candidates who 

submitted a bid about the characteristics and relative advantages 

of the leading bidder. No information, other than the following, 

should be given without taking the advice of the Head of Legal 

Services: 

• how the Award Criteria were applied 

• 

the prices or range of prices submitted, in either case not 

correlated to Candidates’ names 

• the names of Candidates where there were three or more 

Candidates. 


15.7 If a Candidate requests in writing the reasons for a Contracting 

Decision, the Officer must give the reasons in writing within 15 days 

of the request. If requested, the Officer may also give the debriefing 

information at Rule 15.6 above to Candidates who were deselected 

in a pre-tender Shortlisting process. 


SECTION 4: 

CONTRACT AND 

OTHER FORMALITIES 

16. CONTRACT DOCUMENTS 

16.1 Relevant Contracts 

16.1.1 All Relevant Contracts that exceed £75,000 shall be in writing. 

16.1.2 All Relevant Contracts, irrespective of value, shall clearly 

specify: 

• 

• 

• 

what is to be supplied (ie the works, materials, services, 

matters or things to be furnished, had or done) 

the provisions for payment (ie the price to be paid and 

when) 

the time, or times, within which the contract is to be 

performed 

• the provisions for the council to terminate the contract. 

16.1.3 The council’s order form or standard terms and conditions 

issued by a relevant professional body must be used wherever 

possible. 

16.1.4 In addition, every Relevant Contract of purchase over £30,000 

must also state clearly as a minimum: 

• 

that the contractor may not assign or sub-contract 

without prior written consent 

• any insurance requirements 

• health and safety requirements 

• ombudsman requirements 

• data protection requirements, if relevant 

• that charter standards are to be met if relevant 

• race relations requirements 

• Disability Discrimination Act requirements 

• Freedom of Information Act requirements 

• 

where Agents are used to let contracts, that Agents must 

comply with the council’s contract procedure rules 

• a right of access to relevant documentation and records 

of the contractor for monitoring and audit purposes if 

relevant. 


16.1.5 The formal advice of the Head of Legal Services must be 

sought for the following contracts: 

• where the Total Value exceeds £75,000 

• those involving leasing arrangements 

• where it is proposed to use a supplier's own terms 

• 

those involving the purchase of application software with 

a Total Value of more than £30,000 

• those that are complex in any other way. 

16.2 Contract Formalities 

16.2.1 Agreements shall be completed as follows: 

Total Value Method of Completion By 

Up to £30,000 signature Line Manager (see Rule 16.2.3) 

£30,001 to £75,000 signature Supervising Officer (see Rule 16.2.3) 

Above £75,000 sealing See Rule 16.3 

16.2.2 All contracts must be concluded formally in writing before 

the supply, service or construction work begins, except in 

exceptional circumstances, and then only with the written 

consent of the Deputy Chief Executive. An award letter is 

insufficient. 

16.2.3 The Officer responsible for securing signature of the contract 

must ensure that the person signing for the other contracting 

party has authority to bind it. 

16.3 Sealing 

16.3.1 Where contracts are completed by each side adding their 

formal seal, such contracts shall be signed by at least two 

Officers which, together with the fixing of the council’s seal, 

must be witnessed by a further officer on behalf of the Head of 

Legal Services. 

16.3.2 Every council sealing will be consecutively numbered, recorded 

and signed by the person witnessing the seal. The seal must not 

be affixed without the authority of the Cabinet, a Committee, 

a Portfolio Holder, or a Deputy Chief Executive acting under 

delegated powers. 


16.3.3 A contract must be sealed where: 

• 

• 

• 

the council may wish to enforce the contract more than 

six years after its end 

the price paid or received under the contract is a nominal 

price and does not reflect the value of the goods or 

services 

there is any doubt about the authority of the person 

signing for the other contracting party, or 

• the Total Value exceeds £75,000. 

17. BONDS AND PARENT COMPANY GUARANTEES 

17.1 The Officer must consult the Head of Finance about whether a 

Parent Company Guarantee is necessary when a Candidate is a 

subsidiary of a parent company and: 

• the Total Value exceeds £250,000, or 

• award is based on evaluation of the parent company, or 

• there is some concern about the stability of the Candidate. 

17.2 The Officer must consult the Head of Finance about whether a Bond 

is needed: 

• where the Total Value exceeds £1,000,000, or 

• where it is proposed to make stage or other payments in 

advance of receiving the whole of the subject matter of 

the contract and there is concern about the stability of the 

Candidate. 

18. PREVENTION OF CORRUPTION 

18.1 The Officer must comply with the Code of Conduct and must 

not invite or accept any gift or reward in respect of the award or 

performance of any contract. It will be for the Officer to prove that 

anything received was not received corruptly. High standards of 

conduct are obligatory. Corrupt behaviour will lead to dismissal 

and is a crime under the statutes referred to in Rule 18.2 below. 


18.2 The following clause must be put in every written council contract: 

“The Council may terminate this contract and recover all its loss if 

the Contractor, its employees or anyone acting on the Contractor’s 

behalf do any of the following things: 

(a) 

(b) 

(c) 

offer, give or agree to give to anyone any inducement or reward 

in respect of this or any other Council contract (even if the 

Contractor does not know what has been done), or 

commit an offence under the Prevention of Corruption Acts 

1889 to 1916 or Section 117(2) of the Local Government Act 

1972, or 

commit any fraud in connection with this or any other Council 

contract whether alone or in conjunction with Council 

members, contractors or employees. 

Any clause limiting the Contractor’s liability shall not apply to this 

clause.” 

19. DECLARATION OF INTERESTS 

19.1 If it comes to the knowledge of a member or an employee of the 

authority that a contract in which he or she has a pecuniary interest 

has been or is proposed to be entered into by the council, he or she 

shall immediately give written notice to the chief executive. The 

chief executive shall report such declarations to the appropriate 

Committee. 

19.2 Such written notice is required irrespective of whether the pecuniary 

interest is direct or indirect. An indirect pecuniary interest is distinct 

from a direct pecuniary interest in as much as it is not a contract to 

which the member or employee is directly a party. 

19.3 A shareholding in a body not exceeding a total nominal value of 

£1,000 or 1% of the nominal value of the issued share capital 

(whichever is the less) is not a pecuniary interest for the purposes of 

this standing order. 

19.4 The chief executive shall maintain a record of all declarations of 

interests notified by members and Officers. 

19.5 The chief executive shall ensure that the attention of all members is 

drawn to the National Code of Local Government Conduct. 


SECTION 5: 


MANAGEMENT 

20. MANAGING CONTRACTS 

20.1 Heads of service in sponsoring departments are to name contract 

managers for all new contracts. All contracts must have a named 

council contract manager for the entirety of the contract. 

20.2 Contract managers must follow the procedures set out in the 

council’s Purchasing Guide. 

21. RISK ASSESSMENT AND CONTINGENCY PLANNING 

21.1 A business case must be prepared for all procurements with a 

potential value over the EU Threshold. Provision for resources for 

the management of the contract, for its entirety, must be identified in 

the business case. 

21.2 For all contracts with a value of over £75,000, contract managers 

must: 

• maintain a risk register during the contract period 

• undertake appropriate risk assessments and for identified risks 

• ensure contingency measures are in place. 

22. CONTRACT MONITORING, EVALUATION AND REVIEW 

22.1 All contracts which have a value higher than the EU Threshold 

limits, or which are High Risk, are to be subject to monthly formal 

review with the contractor. The review may be conducted quarterly 

if permitted by the Director of Governance. 

22.2 For all contracts with a value higher than the EU Threshold limits, 

or which are High Risk, an annual report must be submitted to the 

Contract Management Board. 

22.3 A council-developed Gateway review process must be applied to 

all contracts deemed to be High Risk, High Value, or High Profile. 

This process must be applied at key stages of major procurements. 


22.4 During the life of the contract, the Officer must monitor in respect 

of: 

• performance 

• compliance with specification and contract 

• cost 

• any Value for Money requirements 

• user satisfaction and risk management. 

22.5 Where the Total Value of the contract exceeds £200,000, the 

Officer must make a written report to the relevant Portfolio Holder 

evaluating the extent to which the purchasing need and the contract 

objectives (as determined in accordance with Rule 5.2) were met by 

the contract. This should be done normally when the contract is 

completed. Where the contract is to be re-let, a provisional report 

should also be available early enough to inform the approach to 

reletting of the subsequent contract. 


DEFINITIONS 

APPENDIX 

Agent 

A person or organisation acting on behalf of the council or on 

behalf of another organisation. 

Approved List A list drawn up in accordance with Rule 7.2. 

Award Criteria 

The criteria by which the successful Quotation or Tender is to be 

selected (see further Rules 10 and 11.2e). 

Award Procedure The procedure for awarding a contract as specified in Rules 8, 10 

and 15. 

Best Value 

Bond 

Cabinet 

Candidate 

Chief Finance 

Officer 

Chief Officer 

Code of Conduct 

Committee 

Constitution 

Consultant 

Contract 

Management 

Board 

The duty, which Part I of the Local Government Act 1999 places 

on local authorities, to secure continuous improvement in the way 

in which functions are exercised, having regard to a combination 

of economy, efficiency and effectiveness as implemented by the 

council. 

This terminology has now in many instances been superceded by 

Value for Money. 

An insurance policy: if the contractor does not do what it has 

promised under a contract with the council, the council can claim 

from the insurer the sum of money specified in the bond (often 10% 

of the contract value). A bond is intended to protect the council 

against a level of cost arising from the contractor’s failure. 

The council’s cabinet as defined in the Constitution. 

Any person who asks or is invited to submit a Quotation or Tender. 

The director of finance and performance or such other officer as 

may be designated chief finance officer by the council. 

The officers defined as such in the Constitution. 

The code regulating conduct of Officers issued by the Deputy Chief 

Executive – Corporate Services. 

A committee which has power to make decisions for the council, for 

example a joint committee with another local authority, but not a 

scrutiny committee. 

The constitutional document approved by the council which: 

• allocates powers and responsibility within the council and 

between it and others 

• delegates authority to act to the Cabinet, Committees, Portfolio 

Holders and Officers 

• regulates the behaviour of individuals and groups through 

rules of procedure, codes and protocols. 

Someone employed for a specific length of time to work to a defined 

project brief with clear outcomes to be delivered, who brings 

specialist skills or knowledge to the role, and where the council 

has no ready access to employees with the skills, experience or 

capacity to undertake the work. 

The group of Officers that meets regularly to consider procurement 

issues on a corporate basis. 


Contracting 

Decision 

Corporate 

Contract 

Deputy Chief 

Executive 

Director of 

Governance 

EU Procedure 

EU Threshold 

European 

Economic Area 

Financial Officer 

Financial 

Regulations 

Framework 

Agreement 

Government 

Procurement 

Agreement 

Head of Legal 

Services 

High Profile 

High Risk 

High Value 

Invitation to 

Tender 

Key Decision 

Line Manager 

Nominated 

Suppliers and 

Sub-contractors 

Any of the following decisions: 

• composition of Approved Lists 

• withdrawal of Invitation to Tender 

• whom to invite to submit a Quotation or Tender 

• Shortlisting 

• award of contract 

• any decision to terminate a contract. 

A contract let by the Strategic Procurement and Contract 

Management Service to support the council’s aim of achieving Value 

for Money. 

As defined in the Constitution. 

As defined in the Constitution. 

The procedure required by the EU where the Total Value exceeds 

the EU Threshold. 

The contract value at which the EU public procurement directives 

apply. 

The 15 members of the European Union, and Norway, Iceland and 

Liechtenstein. 

The most senior Officer representing the Deputy Chief Executive 

– Corporate Services or designated by him to provide financial 

advice to the Chief Officer. 

The financial regulations outlining Officer responsibilities for 

financial matters issued by the Chief Finance Officer in accordance 

with the Constitution. 

An agreement between one or more authorities and one or more 

economic operators, the purpose of which is to establish the 

terms governing contracts to be awarded during a given period, in 

particular with regard to price and, where appropriate, the quantity 

envisaged. 

The successor agreement to the General Agreement on Trade and 

Tariffs. The main signatories other than those in the European 

Economic Area are the USA, Canada, Japan, Israel, South Korea, 

Switzerland, Norway, Aruba, Hong Kong, China, Liechtenstein and 

Singapore. 

As identified in the Constitution. 

A high-profile purchase is one that could have an impact on 

functions integral to council service delivery should it fail or go 

wrong. 

A high-risk purchase is one which presents the potential for 

substantial exposure on the council’s part should it fail or go wrong. 

A high-value purchase is where the value exceeds the EU Threshold 

values. 

Invitation to tender documents in the form required by these 

contract procedure rules. 

Decisions that are defined as key decisions in the Constitution. 

The Officer’s immediate superior or the Officer designated by the 

Chief Officer to exercise the role reserved to the line manager by 

these contract procedure rules. 

Those persons specified in a main contract for the discharge of any 

part of that contract. 


Non-commercial 

Considerations 

Officer 

Parent Company 

Guarantee 

Portfolio Holder 

Priority Services 

Procurement 

Strategy 

Purchasing Guide 

Quotation 

Relevant Contract 

Shortlisting 

Strategic 

Procurement 

and Contract 

Management 

Service 

Supervising 

Officer 

(a) The terms and conditions of employment by contractors of 

their workers or the composition of, the arrangements for the 

promotion, transfer or training of or the other opportunities 

afforded to, their workforces (‘workforce matters’). 

(b) Whether the terms on which contractors contract with their 

sub-contractors constitute, in the case of contracts with 

individuals, contracts for the provision by them as selfemployed 

persons of their services only. 

(c) Any involvement of the business activities or interests of 

contractors with irrelevant fields of government policy. 

(d) The conduct of contractors or workers in industrial disputes 

between them or any involvement of the business activities 

of contractors in industrial disputes between other persons 

(‘industrial disputes’). 

(e) The country or territory of origin of supplies to, or the location 

in any country or territory of the business activities or interests 

of, contractors. 

(f) Any political, industrial or sectarian affiliations or interests of 

contractors or their directors, partners or employees. 

(g) Financial support or lack of financial support by contractors for 

any institution to or from which the authority gives or withholds 

support. 

(h) Use or non-use by contractors of technical or professional 

services provided by the authority under the Building Act 1984 

or the Building (Scotland) Act 1959. 

Workforce matters and industrial disputes, as defined in 

paragraphs (a) and (d), cease to be non-commercial considerations 

to the extent necessary or expedient to comply with Best Value; 

or where there is a transfer of staff to which the Transfer of 

undertakings (Protection of Employment) Regulations 1981 (TUPE) 

may apply. 

The officer designated by the Chief Officer to deal with the contract 

in question. 

A contract which binds the parent of a subsidiary company as 

follows: if the subsidiary company fails to do what it has promised 

under a contract with the council, the council can require the 

parent company to do so instead. 

A member of the Cabinet to whom political responsibility is 

allocated in respect of specified functions. 

Those services required to be tendered as defined in the EU public 

procurement directives. 

The document setting out the council’s approach to procurement 

and key priorities for the next few years. 

The suite of guidance documents, together with a number 

of standard documents and forms, which supports the 

implementation of these contract procedure rules. The guide is 

available on the council’s intranet. 

A quotation of price and any other relevant matter (without the 

formal issue of an Invitation to Tender). 

Contracts to which these contract procedure rules apply (see 

Rule 4). 

The process of selecting Candidates who are to be invited to quote 

or bid or to proceed to final evaluation. 

The council’s central procurement unit charged with providing 

strategic direction and advice to secure Value for Money in the 

council’s procurement activities. 

The Line Manager’s immediate superior. 


Tender 

Tender Record 

Log 

Total Value 

TUPE 

Transfer of 

Undertakings 

(Protection of 

Employment) 

Regulations 2006 

(SI 2006 No.246) 

Value for Money 

A Candidate’s proposal submitted in response to an Invitation to 

Tender. 

The log kept by the director of resources to record details of 

Tenders (see Rule 13.5). 

The whole of the value or estimated value (in money or equivalent 

value) for a single purchase or disposal calculated as follows: 

(a) where the contract is for a fixed period, by taking the total price 

to be paid or which might be paid during the whole of the period 

(b) where the purchase involves recurrent transactions for 

the same type of item, by aggregating the value of those 

transactions in the coming 12 months 

(c) where the contract is for an uncertain duration, by multiplying 

the monthly payment by 48 

(d) for feasibility studies, the value of the scheme or contracts 

which may be awarded as a result 

(e) for Nominated Suppliers and Sub-contractors, the total value 

shall be the value of that part of the main contract to be 

fulfilled by the Nominated Supplier or Sub-contractor. 

Subject to certain conditions, these regulations apply where 

responsibility for the delivery of works or services for the authority 

is transferred from one organisation (eg private contractor, local 

authority in-house team) to another (eg following a contractingout 

or competitive tendering process) and where the individuals 

involved in carrying out the work are transferred to the new 

employer. These regulations seek to protect the rights of 

employees in such transfers, enabling them to enjoy the same 

terms and conditions, with continuity of employment, as existed 

with their former employer. Broadly, TUPE regulations ensure that 

the rights of employees are transferred along with the business. 

Value for money is not the lowest possible price; it combines goods 

or services that fully meet your needs, with the level of quality 

required, delivery at the time you need it, and at an appropriate 

price. 


The Chartered Institute of 

Public Finance and Accountancy 

Registered with the Charity 

Commissioners of England and 

Wales No. 231060 

Registered office: 

3 Robert Street 

London WC2N 6RL 

Tel: 020 7543 5600 

Fax: 020 7543 5607 

Email: publications@cipfa.org 

www.cipfa.org.uk/shop

CONTRACT PROCEDURE RULES - SPS Consultancy

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